You don’t have to be Warren Buffet or Elon Musk to think differently or to understand that when the market is all moving one way, maybe there’s an opportunity in the opposite direction.
What do I mean by that?
It’s my way of telling you that right now could be the best time to buy.
The mortgage data tells us that applications are down, and a conclusion might be that fewer buyers in the market may be prepared to compete for the property you just fell in love with.
As an experienced broker in our neighborhood, I know that going one-on-one with the seller means you’ll have plenty of negotiation leverage, unhindered by competing offers.
Of course, the counter-argument begins with: What about rising interest rates?
What about sliding values? Or the fact the Federal Reserve has signalled that after six rises in the cash rate this year, maybe America has had sufficient medicine, and inflation will now taper down.
When the Fed’s thirst for hiking rates has turned the corner, you should get ready for a market upswing, most likely a few months down the track when spring and summer bring out most buyers.
If you get caught in that wave, the discounts currently in the market will be off the table.
Below are a few ideas on how you might approach the market today, whether you’re an upgrader, downsizer or even a first-time buyer.
Don’t rush
Making a rash decision just because you want to capitalize on the tapering price trends will be a mistake. Create a plan and stick to it, and don’t be put off by doomsayers in the market. If the time is right for you, it’s right.
Intensify research
Focusing on the style, size and location of the property you wish to buy is the best action right now. Engage with a great broker and leave no stone unturned.
Money talks
Stay engaged with your bank or mortgage broker to clarify your budget. Rates are moving up, down and sideways all the time. Resist the temptation to predict the market but always be in a position to know exactly what you can afford. A pre-approval in your back pocket is still essential.
Tough talk
Today, you’re in an excellent position to negotiate a great deal with a seller, and you shouldn’t be afraid to walk away if that’s how the conversation rolls. Resist the temptation to low-ball though on a property you genuinely like just because you feel market conditions require it. You may just offend the seller.
Low-ball catch
Let’s spend a moment on this. Buyers often low-ball when they don’t love the property but are prepared to buy at the right price. That’s not always a recipe for long-term home ownership happiness. Your dream home does not have to be the bargain of the century. The value comes from how long you own it.
Future proof
Even when you find a great home at an awesome price, take a breath. Make sure it will meet your needs for at least the next 5-10 years. This is especially important if you’re starting a family or have little kids who’ll turn into teenagers quicker than you might imagine.